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Nice diligence here. 
A few comments.
1) I wouldn't say 6% rewards are "too good to be true" when BlockFi and Celsius offer 8% for staking. However, it's very competitive and the best for a crypto card by far.
2) The 6% requires a TERN stake which is why I'm more confident that it's related more to staking then orderbook trade. For example, I stake 145,000 TERN and that costs me $1200 which drives the price up. If i plan to keep using Blockcard its a great deal because I can profit from others staking but earn rewards short term as well.
Staking TERN at this level makes a lot of sense as it's relatively cheap.
3) The biggest issue I have with your math is that it does not accurately reflect the conversion. I can go buy TERN on Whitebit or another exchange at 0.07 and deposit it directly on to the card. As long as I spend at 0.07 then I'm always good, regardless of the orderbook.
A few comments.1) I wouldn't say 6% rewards are "too good to be true" when BlockFi and Celsius offer 8% for staking. However, it's very competitive and the best for a crypto card by far.
2) The 6% requires a TERN stake which is why I'm more confident that it's related more to staking then orderbook trade. For example, I stake 145,000 TERN and that costs me $1200 which drives the price up. If i plan to keep using Blockcard its a great deal because I can profit from others staking but earn rewards short term as well.
Staking TERN at this level makes a lot of sense as it's relatively cheap.
3) The biggest issue I have with your math is that it does not accurately reflect the conversion. I can go buy TERN on Whitebit or another exchange at 0.07 and deposit it directly on to the card. As long as I spend at 0.07 then I'm always good, regardless of the orderbook.
1) Do you understand how Blockfi is able to award 8%? They loan out your crypto and charge a higher interest rate to borrowers and pass on a part of it to you. This is not the same as what is being offered by blockcard. "Unlimited" 6% cashback for just $1200 stake.
2) The TERN stake is meaningless. You can give them a $1200 fee. Then go spend $100,000 and make $6000 in cash back. How does a company pay you $6000 for staking just $1200? "Too good to be true". Also if you have to depend on others putting in money, it makes it a pyramid scheme. The day others stop putting in money, you lose your money.
3) Doesn't change anything. They are still able to conduct arbitrage in a captive market. The "spending" of TERN on the blockcard is ONLY related to USDD:TERN market which is captive where I have clearly pointed you to the ongoing arbitrage. Don't trust what I'm saying - look at the transactions yourself.
But hey, you do you!
1) No need to be defensive. I'm just saying that you can't call something too good to be true just because you don't understand how it works.
2) What happens when the price of TERN increases? The cost of the stake goes up as well. I do agree that you can spend $100,000 and make $6,000. It's actually a pretty sweet deal if you're in early. I just think the cost of the stake will increase significantly as the value of TERN rises. Everyone won't be able to afford it.
3) Arbitrage what? I buy TERN for $0.007 and spend at $0.007. There is no arbitrage when my buy/sell price is same. Just like if I buy BTC for $10,000 and sell for $10,000 my arb is 0.
1) I understand how it works and described it in detail. It seems you are the one who isn't able to fully grasp the way Ternio is able to award 6%. If you have proof that what I wrote is inaccurate, please provide an explanation of why you are calling it inaccurate.
2) TERN price can increase but as long as arbitrage continues to take place, TERNIO continues to make profit and pass on a fraction of it to the user.
3) Please read the original post. The collective user base loses money. While you as an individual may profit, there has to be another individual who loses more money for you to profit.
If you don't wish to look into the facts and trust TERNIO with your money, that is absolutely fine by me. The facts are the facts regardless of what you or I opine.
